Trading reserve

The reserves in the field of trading Forex trading is not a complex concept as some people make it . The easiest way to look at trading reserves are as follows:
Basically, when the rolling trading it uses the reserve account balance short-term free of the institution providing the reserve. Short - term balance of the account used to purchase the amount of currency greatly exceed the value of the account of trader . Consider the following example:
Example: Trader x has an account with 50,000 euros in " ACM " ACM. The trading value of 1000000 euro against the U.S. dollar . This equates to a reserve rate of 5 % ( 50,000 equal to 5 % of 1,000,000 ) . How can a trader x that trades an amount equal to 20 times the money that you owned ? The answer is that " ACM " ACM give it temporarily required to balance the transaction that it wishes to do. Without reserve, will not be able rolling Q of the purchase or sale of more than 50,000 at a time. In the standard accounts apply " ACM " ACM backed up with a minimum of 1%. Trading with " ACM " ACM , owns the rolling ability to conduct transactions worth 5,000,000 euros at one time .
Performs backup and function of guarantee to cover any losses that may be incurred . Since it does not buy or sell anything for delivery, the only requirement , and certainly the only goal of owning funds in your account is getting sufficient reserves .
The capacity provided by ACM reserves reflect our willingness to provide traders with the level of risk that they would like to work on the basis of , but we do not recommend trading close to 1% reserve where this is accompanied by a huge risk . But the choice in the end leaves the trader to conduct transactions that fit his desire for risk